QB Issue Resolution:

You’ll need to create a new payroll item and make sure to tag it as a Vacation hourly rate. I’ll show you how:

  1. Click List then choose Payroll Item List.
  2. Select the Payroll Item drop down then choose New.
  3. On the setup method choose Custom Setup radio button then hit Next.
  4. For the Payroll item type select Wages then hit Next.
  5. Choose Hourly wages ratio button on the wages window and click Next.
  6. Click Vacation Pay then hit Next.
  7. You can then Enter the name for hourly item and click Next.
  8. Choose your expense account and select Finish.

I’ve attached some screenshots below in case you need a visual reference.

You can then adjust the vacation accruals on the employees profile.

Feel free to read this article for more details on how to: Add or change sick and vacation accruals on an employee profile.

Resolution for Issue 'I am in Washington State. Every time I enter an employees vacation or holiday hours it deducts from the accrued sick pay. How do I correct this?' available: Yes (Solved).
Source: Intuit Community forum.

I am in Washington State. Every time I enter an employees vacation or holiday hours it deducts from the accrued sick pay. How do I correct this?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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